A development has 28 lots that have been in inventory for four years. The market will limit sales to five lots a year. Lot prices will be stable for three years but then increase by 5% per year. There are various values on the lots, but the average value today is $50,000. The lots are priced at $100,000 each, and this is the reason none have sold. The real estate taxes are $200 per lot for the inventory of previous year. Sales commissions are 5% of gross sales. Since the lots are already built, the market appears to be recovering the entreprenurial incentive is only 15% of the gross sale price. There is $25,000 of deferred maintenance and about $1,000 per year in ongoing maintenance. What is the value of all 28 lots today if the discount rate is 10% and there is annual accounting? O $812,000 O $1,461,769 O $837,000 O $1,145,000 4